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TMI Blog1981 (5) TMI 66X X X X Extracts X X X X X X X X Extracts X X X X ..... ainst the order of the AAC. The brief facts are that the firm M/s Gumanmal Umraomal in which the assessee was a partner, made a voluntary disclosure and declared an income of Rs. 40,000 represented by stock of cut emeralds and cash of Rs. 30,000 purportedly earned between the asst. yrs. 1970-71 to 1975-76. After the declaration, the said assets were distributed amongst the partners. The assets tha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e-constituted firm by way of giving the goods that fell to his share and which were valued at Rs. 14,000, thought at the time of distribution of amongst the partners, the value of such goods was taken at Rs. 9,446 only. On these facts, he took the view that there was no sale and, therefore, no profits accrued for being taxed. He also observes that the goods distributed amongst the partners were va ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to himself and that a sale contemplates a seller and a purchaser. If a person re-values his goods and chose a higher value for them, the Supreme Court observes, he cannot be considered as having sold these goods and make profits therefrom. It is also clearly observed that nor can a person by handing over his goods to a partnership of which he is a partner and that as his share of capital be consid ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... capital to the re-constituted firm and whether profits arising therefrom were taxable. The AAC answered that question saying that there was no sale and, therefore, no taxable profits accrued. There was no issue before the AAC whether the difference of Rs. 4,554 could be taxed either as short term capital or business income. There being no such issue, the AAC cannot be said to have erred in not hol ..... X X X X Extracts X X X X X X X X Extracts X X X X
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